Buffett buys 60% stake in Pritzker firm

Berkshire Hathaway to take full control of Marmon Holdings and its varied manufacturing interests within 6 years.

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NEW YORK (CNNMoney.com) -- Warren Buffett's Berkshire Hathaway is paying $4.5 billion for a 60 percent stake in Marmon Holdings Inc., a privately-held conglomerate controlled by the Pritzker family in Chicago.

The acquisition was announced Tuesday by Buffett, the legendary investor who serves as chairman and chief executive of Berkshire Hathaway, and Tom Pritzker, chairman of Marmon. The deal is expected to close within the next three months.

Berkshire Hathaway (BRKA, Fortune 500) will take control of 60% of Marmon and acquire the rest of the company within six years, according to a joint statement.

Buffett noted "Marmon's impressive record of growth and profitability over the years."

Marmon comprises more than 125 manufacturing and service businesses in the energy, construction, transportation, engineering and other sectors in North America, the United Kingdom, Europe, China and elsewhere, according to the statement.

The companies said that Marmon's annual revenues total approximately $7 billion and that operating income more than tripled between 2002 and 2007.

The Pritzker family, whose businesses include the Hyatt hotel chain, has controlled Marmon since 1953.

Buffett has built Berkshire Hathaway into a massive holding company with interests ranging from underwear to private jets. Its 2006 revenues were $98 billion. Berkshire Hathaway's shares have outperformed the S&P 500 by more than two-fold since 1965.  To top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.